NC Studies Weekly - Week 23: Spending, Borrowing, and Saving

Based on this week’s reading, why would a parent pay their child an allowance?

• Parents pay their children an allowance so that they will do chores around the house without being asked.

• Most parents pay their children allowances because they make good grades. An allowance is a reward.

• By having an allowance, children can buy the things they want for themselves.

• A parent might pay their child an allowance, because they want their child to learn how to manage money.

How do you know something is a need or a want?

• You must have needs to live. Wants are extra items.

• Needs are things you buy with your own money. You borrow money to buy wants.

• If you would like to have something, it is a want. Needs are things you might not really want.

• If you need something you should buy it. If you want something, you should never buy it.

What might cause a person to go into debt?

• A person might go into debt if they buy only what they want.

• If a person saves their money, they may go into debt.

• When a person spends their money and borrows more, they can go into debt.

• A person may go into debt if someone offers to loan them money, and they accept the offer.

Which graph best represents what happens when you invest in the stock market?

• Chart A best represents what happens when you invest in the stock market because when the company earns money, you earn money.

• Chart A best represents what happens when you invest in the stock market because if the company makes money, you make money. If the company loses money, you lose money.

• Chart B best represents what happens when you invest in the stock market because the stock market is unpredictable. You may lose money or you may make money.

• Chart B best represents what happens when you invest in the stock market because you can lose a lot of money if the company you invest in loses money.

If you put your money into savings, the bank pays you ___________ for allowing them to use your money for a while.

• investment earnings

• interest earnings

• a great deal of money

• money based on their earnings

What is it called when people trade something they have for something they want?

• buying

• investing

• spending

• bartering

Which choice summarizes best what people can donate to charity?

• People can donate money.

• People can donate money and time.

• People can donate energy, money and time.

• People can donate energy and money.

What does it mean to be in debt?

• When you are in debt, you owe someone money.

• If you are in debt, you are earning interest.

• Spending money at a store means that you are in debt.

• By accepting an allowance from your parents, you are in debt.